10-KPeriod: FY2013

SEMPRA Annual Report, Year Ended Dec 31, 2013

Filed February 27, 2014For Securities:SRESREA

Summary

Sempra Energy's 2013 Form 10-K details its operations across regulated utilities (San Diego Gas & Electric and Southern California Gas) and international and U.S. energy infrastructure businesses. The company highlights its integrated operations, regulatory environments, and diverse energy portfolio, including natural gas and electric utility services, as well as renewable energy generation and LNG operations. Key risks for investors include evolving regulatory landscapes, potential changes in government policy, significant capital expenditure requirements, and market volatility in energy commodity prices. The company also faces risks associated with its international operations, environmental compliance, and the ongoing decommissioning of the San Onofre Nuclear Generating Station (SONGS), which could impact financial performance. Despite these risks, Sempra Energy is strategically positioning itself in renewable energy and LNG export markets.

Financial Highlights

47 data points
Beta

Revenue

$10.56B

Net Income

$1.00B

9.5% Net Margin

EPS (Diluted)

$2.00

Total Assets

$37.16B

Cash & Equivalents

$904.00M

Free Cash Flow

$1.78B

Financial Statements
Beta
Revenue$10.56B
Interest Expense$559.00M
Net Income$1.00B
EPS (Basic)$2.05
EPS (Diluted)$2.00
Shares Outstanding (Basic)487.73M
Shares Outstanding (Diluted)498.66M

Key Highlights

  • 1Sempra Energy operates a diversified business model including regulated utilities (SDG&E, SoCalGas) and international/U.S. energy infrastructure segments (Sempra International, Sempra U.S. Gas & Power).
  • 2The company is subject to extensive regulation by bodies like the CPUC, FERC, and NRC, which significantly influences rates, operations, and investment decisions.
  • 3Significant investments are being made in renewable energy (Sempra Renewables) and natural gas liquefaction and export (Cameron LNG project).
  • 4The permanent retirement of the San Onofre Nuclear Generating Station (SONGS) presents ongoing financial and regulatory considerations for SDG&E.
  • 5The company faces substantial risks related to environmental regulations, cybersecurity, and potential litigation.
  • 6Foreign operations in Mexico and South America expose Sempra Energy to currency, political, and economic risks.

Frequently Asked Questions

Sempra Energy's primary business segments include two regulated utilities: San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas). It also operates through Sempra International, which encompasses its South American and Mexican operations, and Sempra U.S. Gas & Power, which includes its renewable energy and natural gas infrastructure businesses.

Key risks include stringent government regulation, potential changes in regulatory policies, significant capital expenditure needs, volatility in energy commodity prices, risks associated with international operations (currency, political, economic), environmental compliance costs, cybersecurity threats, and the financial and regulatory implications of the SONGS nuclear facility's retirement.

Sempra Energy is actively investing in renewable energy through Sempra Renewables and developing LNG export capabilities via its Cameron LNG project. It is also navigating regulatory changes, such as California's Renewables Portfolio Standard (RPS) Program and the impact of distributed generation on its utility businesses.

SONGS was permanently retired by its majority owner, Southern California Edison, in June 2013. SDG&E, a 20% owner, faces ongoing regulatory and financial considerations related to the decommissioning process, including potential impacts on its regulatory assets and the recovery of associated costs.